Self-dealing rules are sometimes confusing. In any event, a small foundation has to determine whether a potential transaction constitutes self-dealing. For this reason, we’ve come up with three straightforward questions that lean funders can apply to any situation. 1. Does the transaction involve a disqualified person? The Internal Revenue Service defines a disqualified person as one of... Read More
The law requires very little when making grants to most domestic public charities. Other than knowing a grantee’s tax status—your foundation has a great deal of flexibility. However, I regularly encounter funders, foundation staff and professional advisors who do not know this. What the Law Requires When Making Grants A few years ago, Project Streamline... Read More
Every year, IRS Form 990-PFs are filed with inaccuracies and mistakes that can be costly to a foundation’s wallet and reputation. Private foundations that don’t have the in-house technology to meet this requirement may seek assistance from tax advisors to avoid these errors. One such example is that starting with the 2020 tax year, Form... Read More
It’s December and your foundation wants to fulfill its payout requirement within the calendar year. What can you do? Tips for meeting your payout requirement: Ask your local community foundation, association of grantmakers, or giving circles for information about community needs and nonprofits they support. Consult with members of the faith community. Ask your government... Read More
Senators Chuck Grassley (R-IA) and Angus King (I-ME) introduced bipartisan legislation that aims to reform private foundations, and ensure that charitable dollars held in donor advised funds (DAFs) are distributed to working charities in a reasonable period of time. A joint press release states: “Donor-advised funds currently have more than $140 billion set aside for... Read More
Foundation trustees have many responsibilities, but fulfilling their legal duties probably tops the list. As such, it’s important that you know the rules and where trustees trip up most. Beyond the law, there are many things foundations can do, such as having a clear mission statement and healthy decision-making process, to help trustees stay out... Read More